The Wall Street Journal (2/6, Morath, Subscription Publication) discussed the passage of the PRO Act in the Democratic-led House of Representatives and mentioned NFIB’s opposition to the measure. NFIB government relations manager Jeff Brabant was quoted saying, “It would let unions boycott mom-and-pop businesses that have nothing to do with that union or its dispute,” and “would significantly restrict the rights of small-business owners to act as and hire independent contractors.” NFIB senior director of federal government relations Kevin Kuhlman was quoted saying regarding the bill, “This is a bill with labor policy proposals that have not only been dismissed in the courts, but have been rejected by Congress for decades.”

NFIB’s Small Business Optimism Index (1/13) ended 2019 with a historically strong reading of 102.7. Seven of 10 components fell from November, while a larger number of small business owners reported improved business conditions and expected higher nominal sales in the coming three months. NFIB Chief Economist William Dunkelberg is quoted saying, “December marked the end of another banner year for the small business economy, as owners took full advantage of strong consumer spending, and federal tax and regulatory relief. ... 2020 is starting out with a solid foundation for continued growth, two-years into the Tax Cuts and Jobs Act that’s providing fuel to grow small businesses and their workforce.”

The AP (1/3) reported that minutes of the Federal Reserve’s December meeting show that it “saw much less risk of recession when it...signaled that it expected to keep low rates unchanged through this year.” According to the AP, “Minutes of the December meeting, released Friday, showed that Fed officials favored keeping rates in a low range of 1.5% to 1.75% to cushion the U.S. economy from slow global growth and the Trump administration’s trade conflicts.” The AP said Fed officials “were also concerned that inflation still hadn’t reached the Fed’s target level of 2%.”

In a front-page article headlined “Rank-and-File Workers Get Bigger Raises,” the Wall Street Journal (12/27, A1, Morath, Sparshott, Subscription Publication) reported workers who are paid less are currently benefiting from higher wage gains than those who earn more than average. Citing the Federal Reserve Bank of Atlanta, the Journal reported that those in the bottom quarter of earners saw their wages rise an average of 4.5% in November versus a year earlier, while wages for those in the top quarter rose just 2.9%. The Journal said the Labor Department has reported that nonsupervisory workers’ earnings jumped 3.7% last month as compared to November 2018, which was more than the 3.1% gain for managers.

Reuters (12/18, Saphir, Marte) reported the US economy “is in good shape after three interest-rate cuts this year, two U.S. central bankers said on Wednesday, underscoring the consensus at the Federal Reserve for keeping borrowing costs where they are for the time being.” Chicago Federal Reserve Bank President Charles Evans told the Economic Club of Indiana, “I think the economy is doing remarkably well.” Reuters added that although Evans “is ‘personally worried’ that inflation continues to run below the Fed’s 2% target, he now sees enough accommodation in place to boost it to 2.2% by 2022.”

The Wall Street Journal (2/9, Ramkumar, Subscription Publication) reported that the US dollar has been rising since last month, rising to the highest point since October. The Journal attributed the gain to coronavirus worries. The Journal said that analysts and investors have expected the dollar to decline for some years, but it has not, and added that the President has said the strong dollar is a problem for the US economy.

Reuters (2/6, Lee, Chen) reported China’s finance ministry announced yesterday that it will “halve additional tariffs levied against 1,717 U.S. goods last year, following the signing of a Phase 1 deal.” According to Reuters, “While the announcement reciprocates the US commitment under the deal, it is also seen by analysts as a move by Beijing to boost confidence amid a virus outbreak that has disrupted businesses and hit investor sentiment.” However, Chinese media sources “report that Beijing could invoke a disaster-related clause in the trade agreement, which might allow it to avoid repercussions even if it cannot fully meet the targeted purchases of U.S. goods and services for 2020.” The New York Times (2/6, Tejada) warned the US-China trade “truce most likely will not last long...if China does not carry through with the part of the deal Mr. Trump prizes most: a promise to buy about $200 billion in goods from the United States over the next two years,” which “could be difficult for Beijing” because it is “grappling with one of its biggest challenges of the modern era.”

CNBC (2/7, Mody) reports the coronavirus outbreak and resulting travel restrictions have drastically changed expectations that 2020 would be “the year the Chinese traveler returned in full force,” and “the implications for global economies could be significant.” This week, “earnings from major travel companies Hilton, Expedia and TripAdvisor could provide more clarity on how much occupancy rates and demand for hotels have fallen due to the outbreak.” CNBC’s (2/7, Clifford) Jim Cramer said, “I think world travel is being paralyzed by the coronavirus outbreak, but we’ll know for sure when Expedia reports after the close.”

Reuters (2/6, Mutikani) reported the Labor Department announced yesterday that “the number of Americans filing for unemployment benefits dropped to a nine-month low last week, suggesting a tightening labor market would continue to keep the longest economic expansion in history on track despite weak business investment. ... Initial claims for state unemployment benefits decreased 15,000 to a seasonally adjusted 202,000 for the week ended Feb. 1, the lowest reading since last April, the Labor Department said. Economists polled by Reuters had forecast claims dipping to 215,000 in the latest week.”

The New York Times (1/12, Scheiber) reported the Labor Department on Sunday announced a new rule on “joint employment” that could make it harder for workers to sue “large companies for wrongdoing by contractors or franchisees.” Under the new rule, “which will take effect in March, employees of a fast-food franchise like a McDonald’s restaurant, for example, may struggle to win a legal claim against the parent company if a franchisee violates minimum-wage and overtime laws.” The rule “effectively replaces a more labor-friendly Obama-era approach that the Trump administration withdrew in 2017, one of several departures from the previous administration in the area of employment and labor law.”

PYMNTS (2/4) reported alternative lender Kabbage is introducing a new loan aiming to give small businesses in the US more control over short-term funding options “among the numerous upcoming products that Kabbage is planning as part of its expansion to drive cash flow for SMBs.” CEO Rob Frohwein said, “As a former small business owner, I know managing cash flow is a major headache...We designed our custom loan product to recognize these inherent challenges and provide our customers with even more flexible funding to better manage their businesses.”

Bloomberg (2/5, Angel) reported conversions of small businesses to worker-owned co-ops will likely become more common as baby boomers retire, as “many have no succession plan, and it can be tough to find a buyer, especially in rural areas.” According to the article, “Recent federal legislation has made it easier for co-ops to get loans and for small businesses to finance a conversion, which typically costs about $30,000 for technical assistance and closing expenses, according to the CDI,” and “the US Department of Agriculture in 2017 modified its lending rules to allow former owners to stay involved in a co-op for five years after conversion.”

U.S. News & World Report (1/3) contributor Maryalene LaPonsie discussed “self-employment tax deductions and benefits to claim,” such as retirement savings, insurance premiums, office supplies, credit card and loan interest, phone and Internet costs, start-up costs, continuing education, advertising, and self-employment taxes, among others.

PYMNTS (1/7) reported open banking and FI-fintech partnerships are “the new norm for financial institutions around the world looking to upgrade their offerings for small businesses (SMBs).” SBM Bank’s collaboration with PayNearby will “ready” India for open banking. Several FIs, including Huntington National Bank and Judo Bank, are working with SaaS firms to “augment their corporate and small business lending capabilities.”

Law360 (1/12, Subscription Publication) reported, “The U.S. House of Representatives has passed two bipartisan bills that would offer entrepreneurship training and mentorship to people leaving federal prisons with the goal of reducing recidivism by helping former inmates gain employment and overcome the stigma of a criminal record.” The pair of legislative measures “would direct the Small Business Administration’s nonprofit partners to provide training for current prisoners and mentorship for former prisoners. The bills do not authorize new funding but would allow the government to reimburse nonprofit partners for the classes and courses they provide, with priority for people set to leave prison within 18 months.”

According to the New York Times (1/9, Hassan), recent minimum wage increases have not benefited tipped workers as much as other hourly workers. Even other subminimum wage workers – such as au pairs – make nearly double the $2.13 required for tipped workers. That’s why the current debate over minimum wage is “calling attention to how many workers are still scraping by with subminimum wages.”

Reuters (1/10, Schneider, Kahn) reported, “The idea of imposing a wealth tax on the richest Americans has elicited sharply divergent views across a spectrum of politicians, with President Donald Trump branding it socialist and progressive Democratic presidential contenders Senators Elizabeth Warren and Bernie Sanders prominently endorsing it. But it may have broad public support, according to a Reuters/Ipsos poll that found nearly two-thirds of respondents agree that the very rich should pay more.” According to Reuters, “Among the 4,441 respondents to the poll, 64% strongly or somewhat agreed that ‘the very rich should contribute an extra share of their total wealth each year to support public programs’ – the essence of a wealth tax.” Reuters added that “while support among Democrats was stronger, at 77%, a majority of Republicans, 53%, also agreed with the idea.”

The Washington Post (1/9, Rosenberg) reported a new research paper “suggests a correlation between an increase in the minimum wage and declining suicide rates among adults ages 18 to 64.” Emory University researchers “analyzed monthly data from all 50 states and the District of Columbia between 1990 and 2015.” The paper, “published in the Journal of Epidemiology & Community Health, found that state-level increases of $1 in minimum wage corresponded with a 3.4 percent to 5.9 percent decrease in the suicide rates of people with a high school diploma or less in that age group.”

The AP reported on several states’ minimum wage increases. In Maine (1/1), the “minimum wage is going up from $11 to $12 per hour effective New Year’s Day.” This is the “fourth annual increase in Maine under a ballot measure approved in 2016 when the state’s minimum was $7.50 an hour.”

Reuters (1/2, Becker) reported Democratic presidential candidate Sen. Elizabeth Warren (MA) “said on Thursday that raising the minimum hourly wage to $15 and ending a program that allow[s] employers to pay disabled workers much less than the minimum would be among steps she would take to ensure financial security for individuals with disabilities.” Warren “detailed the proposals as part of a larger plan to protect individuals with disabilities.”